The large presence of AI-powered appliances at CES 2025 shows how much this technology is already a driver in the consumer electronics sector. And this trend is not limited to premium products. «We expect a greater number of medium-to high-end products being AI integrated as companies seek to lock consumers into their ecosystems – the experts of Euromonitor International say –. Once in, companies will prioritise servitization to monetise the opportunities that AI will present». Moreover, AI will have several important functions. One of this is to enable companies to focus on circular economy initiatives, allowing businesses to refocus on eco-friendly innovations and long-term value creation.
From smart to AI-powered appliances
As Euromonitor International explains, the trend we are seeing is a shift from smart technologies to AI solutions. Smart products will be integrated with AI features creating AI appliances. «Even European brands, which have been reluctant to fully embrace “smart” technologies, exhibited a range of smart appliances and services at IFA 2024. With the potential market for smart homes expected to be greater than 600 billion dollar in 2030, companies are only accelerating their AI efforts». But where will we see AI arrive first? The experts expect in large and small domestic appliances, such as air conditioners, refrigerators, washing machines, ovens, robotic vacuum cleaners, air purifiers, coffee machines.
Servitization will be another sales driver
Servitization means selling an appliance with a service. This will be another interesting trend in home appliances and consumer electronic sectors. According to Euromonitor International, this choice will help companies to face their economical chellenges. «Appliance prices have been depressed for the past 20-30 years, with price increases in nominal terms largely negligible, due to intense competition. Additionally, companies have had to operate with small profit margins, typically below 20%. The move towards servitization has the potential to address these challenges and boost brand loyalty. With a potential market size of USD50 billion, the rewards can be transformative for companies. Servitization is a business model that involves companies selling products and providing additional services to customers».
